Just a year after launching service through New Orleans, rising fuel prices have brought upstart airline ExpressJet Holdings Inc. to a halt.

The Houston carrier will stop operating flights on Sept. 2, but will continue running the Continental Express commuter airline. ExpressJet also will continue running charter flights with 30 aircraft in its corporate aviation unit.

"We are saddened by the news that ExpressJet will cease service but want to reiterate that this is not only an issue in New Orleans, but nationwide," said Sean Hunter, director of aviation

ExpressJet operates 10 daily round-trip flights through New Orleans with a total of 500 daily seats. The airline's flights from New Orleans serve Raleigh-Durham, Austin, San Antonio, Kansas City, and Jacksonville, Fla.

ExpressJet, which bills itself as an airline that flies to cities that are underserved by major air carriers, began service to New Orleans in 2007. It was the first airline to add service to the Crescent City after Hurricane Katrina, and as an incentive, the airport waived the airline's landing fees for planes flying to cities not currently served by the airport and offered a discount for passenger fees.

ExpressJet was spun off in 2002 from Continental Airlines Inc. In addition to Continental, ExpressJet provided commuter services to Delta Air Lines Inc. But last week, Delta said it would end its agreement to use ExpressJet for its Delta Connection commuter service on Sept. 1.